Did QLACs Get a Last-Minute Haircut?
The Ways and Means Committee considered raising the limit on pre-tax contributions to a deferred income annuity to $200,000, but then, apparently for budget reasons, let the current limit...
Secure 2.0: A Booster Shot for Qualified Savings Industry
The proposed bill would allow ETFs in variable annuities and remove the 25% limit on the share of IRA money that can be used to buy a Qualified Longevity...
Research Roundup
We summarize four recent papers: 'Portfolios for Long-Term Investors,' 'What is the Value of Annuities?,' 'Public Economics and Inequality: Uncovering Our Social Nature,' and 'Financial and Total Wealth Inequality...
The Fallen Angels of ‘Nomadland’
Many elderly poor in America have always been poor. But the elderly poor in 'Nomadland' seem relatively new to the game. We compare the people in the film to...
Where’s the Infrastructure for Infrastructure Renewal?
Infrastructure renewal is long overdue in the US. We can come up with the money. But we don't currently have the institutions or the processes that will be needed...
Big drop in net income for publicly traded life/annuity firms in 2020
A $4.7 billion realized investment loss on derivatives for Prudential Financial was the main driver of the drop in its net income, according to a new report from ratings...
A Chip Off the Old Rock?
Bloomberg reported this week that Prudential is considering selling its retirement plan recordkeeping business. Prudential didn't confirm the report, but several industry insiders did. Low interest rates, high costs...
Falling discount rates hurt DB pensions at insurers: AM Best
Only 184 insurance companies rated by AM Best had defined benefit plans at year-end 2019, compared with 257 in 2016, according to a new report. Aggregated insurance company unfunded...
Raising Revenue–and Consciousness
With his Made in America Tax Plan, announced Wednesday, President Biden would raise corporate tax rates and try to stop transfer pricing worldwide. He wants to raise revenue and...
What’s Cooking at ‘Income Lab’?
At their software start-up, Income Lab, three former Jackson National Life executives want to help advisers help clients optimize retirement income. They enter a financial planning field dominated...
Security Benefit Life’s Secret Sauce
Joe Wittrock, CIO at Security Benefit Life, explains how the firm's investments outperform. Eldridge Industries, run by ex-Guggenheim president Todd Boehly, owns SBL, Billboard magazine (right, with Billie Eilish...
Research Roundup
Here's new research on tax avoidance among the very rich, the logic that millionaires use when buying equities, considerations for plan sponsors when estimating income from 401(k) balances, and...
Of Politics and the Pension-Saving ‘Butch Lewis Act’
If you empathize with retired truckers, coal miners and their unions, you'll love the American Rescue Act's $86 billion provision for patching up their underfunded pensions. Otherwise you might...
Social Security Repair Bills, Compared by Actuaries
In a webinar this week, a panel of Academy actuaries presented their analysis of three legislative proposals now floating inside the Beltway. One raises taxes, one lowers benefits, and...
Stimulus Money and Mobius Strips
Our financial system doesn't crash because the banks accommodate the Treasury's liquidity needs and the Fed accommodates the banks' liquidity needs. It works kind of like a Mobius strip.
How Biden Might Pay for Expenditures
Having appropriated $1.9 trillion for pandemic recovery, and with more big ideas in store, the Democrats will be looking to balance their largesse with new revenue. If you're among...
Pandemic Hurt Annuity Sales in 2020
Annuity sales were buoyed in 2020 by a spike in purchases of registered index-linked annuities (up 38%) and fixed annuities (up 10%). Income annuity sales are north of $10...
‘Income America’ Offers ‘5ForLife’
'Our clients are so past proprietary solutions,” said Scott Colangelo, who brought Lincoln Financial, Nationwide, American Century funds, Vanguard, Fidelity and others together to create Income America 5ForLife, an...
Beware the ‘Specialized’ ETFs
In this month's Research Roundup, RIJ shares four recent academic papers on the proliferation of ETFs, the danger (or not) of national debt, rational inflation expectations, and the impact...
‘Bermuda Triangle’ Deal for Principal Financial?
Principal Financial Group, Elliott Investment Management, and Prosperity Life (majority owned by Elliott) may be headed for the same type of 'capital liberating' reinsurance deal that so many other...
